GREENBRIER COMPANIES INC Earnings Per Share Disclosure
Note 14 — Earnings Per Share
The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows:
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Year Ended August 31, |
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(In thousands) |
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2025 |
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2024 |
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2023 |
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Weighted average basic common shares outstanding |
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31,171 |
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31,102 |
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31,983 |
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Dilutive effect of 2.875% Convertible notes, due 2024 1 |
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N/A |
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|
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345 |
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824 |
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Dilutive effect of 2.875% Convertible notes, due 2028 2 |
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— |
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|
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— |
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|
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— |
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Dilutive effect of restricted stock units 3 |
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968 |
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|
916 |
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|
992 |
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Weighted average diluted common shares outstanding |
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32,139 |
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32,363 |
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|
|
33,799 |
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1 The 2.875% Convertible notes due 2024 were retired on February 1, 2024.
2 The dilutive effect of the 2.875% Convertible notes, due 2028 was excluded for the years ended August 31, 2025, 2024 and 2023 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. As these notes require cash settlement for the principal, only a premium is potentially dilutive under the "if converted" method as further discussed below.
3 Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position.
Basic EPS is computed by dividing Net earnings attributable to Greenbrier by weighted average basic common shares outstanding.
For the years ended August 31, 2025, 2024, and 2023, diluted EPS was calculated using the more dilutive of two methods. The first method includes the dilutive effect, using the treasury stock method, associated with restricted stock units and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second method supplements the first by also including the “if converted” effect of the 2.875% Convertible notes due 2024, during the periods in which they were outstanding, and shares underlying the 2.875% Convertible notes due 2028, when there is a conversion premium. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes due 2024 are added back to net earnings and the share count is increased by the shares underlying the convertible notes.
(In millions, except number of shares which are reflected in |
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Year Ended August 31, |
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thousands and per share amounts) |
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2025 |
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2024 |
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2023 |
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Net earnings attributable to Greenbrier |
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$ |
204.1 |
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|
$ |
160.1 |
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$ |
62.5 |
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Weighted average basic common shares outstanding |
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31,171 |
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|
|
31,102 |
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|
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31,983 |
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Basic earnings per share |
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$ |
6.55 |
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$ |
5.15 |
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$ |
1.95 |
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Net earnings attributable to Greenbrier |
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$ |
204.1 |
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$ |
160.1 |
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$ |
62.5 |
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Add back: |
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Interest and debt issuance costs on the 2.875% convertible notes due 2024, net of tax |
|
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— |
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|
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0.5 |
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1.2 |
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Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024 |
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$ |
204.1 |
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$ |
160.6 |
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$ |
63.7 |
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Weighted average diluted common shares outstanding |
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|
32,139 |
|
|
|
32,363 |
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|
|
33,799 |
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Diluted earnings per share (1) |
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$ |
6.35 |
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$ |
4.96 |
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$ |
1.89 |
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1 Diluted earnings per share for the year ended August 31, 2024 and 2023 was calculated as follows:
Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024
Weighted average diluted common shares outstanding
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 28, 2025 | Showing above |
| 2024 | Oct 24, 2024 | |
| 2023 | Oct 25, 2023 | |
| 2022 | Oct 31, 2022 | |
| 2021 | Oct 26, 2021 | |
| 2020 | Oct 28, 2020 | |
| 2019 | Oct 29, 2019 | |
| 2018 | Oct 26, 2018 | |
| 2017 | Oct 27, 2017 | |
| 2016 | Oct 25, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.